5 Red Flags Your MSP Might Be Selling—And What That Means for You

2024 saw some of the highest mergers and acquisitions (M&A) activity among MSPs in years. While these buyouts can lead to rapid growth and new opportunities for MSPs, the changes in leadership and adjustment periods often leave their clients grappling with declining service quality, unexpected changes, or increased costs.

If you rely on external IT support through an MSP contract, understanding these risks and how to recognize when a merger took place is crucial to maintain continuity and avoid disruptions. This post will help you learn 5 common signs that your MSP may have been acquired and understand how this change could impact your business.

5 Signs Your MSP Might Sell

These are good indicators that there are some big changes in the works that could impact your MSP contract.

1. Sudden Leadership Changes

Did the owner of the MSP that you've known for years suddenly resign or retire or did the owners role change? Have other executives quietly left the company, with little explanation as to why? These seemingly out-of-the-blue leadership changes can be precursors to a big sale. They’re also often the catalyst to a shift from a customer-first mindset to more profit-driven decisions.

2. Declining Service Quality and Slower Response Times

High staff turnover, the loss of experienced techs, and general disruptions within the MSP can lead to support teams becoming overloaded or unresponsive. You may notice a decline in the prompt, personalized service you once relied on as remaining staff struggle to keep up with demand.

3. Unexplained Price Increases

Unexpected price increases are a red flag, especially when accompanied by vague or insufficient explanations. Your MSP contract may even include new tiered pricing models that reduce the quality or quantity of your service unless you switch to a more expensive plan, pressuring you to spend more just to maintain the standard you've always enjoyed.

4. A Shift Away from Local, Personalized Support

Your once locally-owned MSP may now feel like a generic call center. Familiar techs who understood the intricacies of your business have been replaced, leading to slower resolutions and a lack of tailored solutions. This shift can undermine the relationship you've built with your MSP over the years and signal that a sale is coming soon.

5. Lack of Transparency About the Company’s Future

When you ask your IT team about long-term company plans, you should get clear and upfront answers. If you get vague, evasive responses instead, there might be upcoming changes to leadership and, consequently, your MSP contract. Executives may also avoid talking about investments, growth, or new service offerings, indicating instability and a potential shift in service and priorities.

What Happens After an MSP is Acquired?

So what does all of this mean for your business? Is it really that big of a deal if your MSP gets bought out?

The short answer is yes. When an MSP is acquired, higher prices often become the norm as the new ownership seeks to maximize profits and recoup its investment. At the same time, client support tends to suffer due to high staff turnover or outsourcing.

These changes can significantly decrease service quality, leaving you in a difficult position where transitioning to a new provider and setting up a new MSP contract becomes necessary to maintain reliable IT support and meet operational needs.

ICS's Commitment to Stability

At ICS, we're committed to providing each of our clients with long-term, reliable IT support. We're independently owned and locally operated, with no plans to sell. You don't have to worry about the sudden changes in price, leadership, or quality that can disrupt your operations and leave you in the lurch. 

Our proactive approach to cybersecurity, customer service, and long-term partnerships will always be a priority. You can count on us for a stable MSP contract, every time.

Build a Lasting Partnership with ICS

You deserve steady, high-quality IT support that's customized to your business. And that's exactly what you'll get with ICS. If you're feeling unsure about the future of your current MSP contract, you can have full confidence that ICS will provide the local, personalized, long-term support you need. Get in contact with one of our team members to learn more.